Having the right products at a great price may bring customers in, but it doesn’t always influence them to buy. The people inside Ulta are just as important as the products. Chapter 4 discusses the importance of knowledge, human and social capital, and how to leverage technology and social media for a successful business model. I think the beauty industry is a great place to see this in action. A large part of our perception of beauty depends on our social interactions and surroundings. I will use the salon as an example, particularly its social and economic significance in the Black community and how it relates to Ulta’s unique model of having salons inside its full-service stores. Historically, black salons and barbershops, although we won’t dive into those here, have served as social pillars in the community. A group of stylists shared a space, each with similar but still unique skills, serving their clientele. Before the age of social media and our almost unlimited access to the lives of other people, the salon is where you caught up with those in your social circle. It was a place where community thrived; you might see friends and relatives at the salon. It was also your barometer of what beauty was and what was on trend. Most salons, ironically, were places where you not only received a beauty service, but could also buy beauty products. Mary Kay, Avon, and the like were our popular beauty and wellness products that were your cross between typical drugstore and department store brands, and the people selling those products were right there in the beauty shop. Sometimes behind the chair, sometimes in it, and sometimes not getting a service at all. The salon was a place where you built social capital and learned how to use it, and I think Ulta has captured that essence perfectly.
Now, let’s fast-forward to today’s salon culture. Most open-concept salons don’t exist anymore; definitely not like they used to. As we move more towards curated “luxury” experiences, which are usually synonymous with quiet, private hair styling suites rather than a full-service salon, we have lost a bit of that community, of that naturally built social capital amongst peers, neighbors, friends, and relatives. Ulta is pushing back on that narrative by offering their salon right in-store; it’s an open concept, and instead of your stylist selling products you’d order out of a catalog and wait until the next time you were both in the salon, your service and shopping experience is happening right in store at the hands of the person behind the chair, and products that you love, or discover, can come home with you that same day.
The Brains Behind the Beauty
Through the lens of Chapter 4, Ulta’s salon stylists represent human capital. Their education, technical skills, product knowledge, and experience all add to the business’s value. A product on a shelf cannot assess the condition of someone’s hair, explain why a particular product may work for them, or show them how to use it. A knowledgeable stylist can.
This is also where human and social capital begin to overlap. A client who regularly visits the same stylist develops a relationship with that person. Over time, the stylist learns their client’s preferences, hair, lifestyle, and even what they are willing to spend. At the same time, the client develops trust in the stylist’s knowledge and recommendations. If my stylist tells me my hair is dry and recommends a particular deep conditioner, I am probably more likely to listen to them than to an advertisement telling me the exact same thing. That relationship has value, and with the product just steps away from the salon chair, Ulta has an opportunity to turn it into a sale.
This makes attracting, developing, and retaining knowledgeable employees especially important. Chapter 4 describes these three activities as a “three-legged stool” of human capital. Ulta can hire talented stylists, but beauty is constantly changing. New products, ingredients, techniques, and trends mean the knowledge employees bring to the company must keep developing. Retention is equally important because when an experienced stylist leaves, the business loses more than an employee. It may also lose years of experience, specialized knowledge, and relationships that the stylist has built with clients.
The way we build social capital around beauty has also changed. The conversations that once happened primarily in salons now happen on TikTok, Instagram, YouTube, and other social platforms. We no longer have to wait until our next hair appointment to find out what products everyone is using or what hairstyles are becoming popular. A stylist can post a finished look and reach thousands of people who have never sat in their chair. A customer can recommend a product to people she has never met.
In a way, social media has become one giant beauty shop. Conversations are still happening, recommendations are still being made, and people are still shaping what others consider beautiful. The biggest difference is the size of that social circle.
Ulta has found ways to participate in this expanded social network as well. The company uses influencers, affiliates, and its own associate ambassadors as part of its social media strategy. This allows the knowledge and influence surrounding the company to extend beyond the people physically inside its stores. Someone may discover a product through social media, visit Ulta to see it in person, receive additional information from an associate or stylist, make a purchase, and later share their own experience online. Knowledge is constantly moving between the digital and physical spaces.
More Than a Hair Appointment
Chapter 4 made me look at Ulta’s salon differently. It is easy to see it as simply another service offered inside the store, but it also gives Ulta access to something that cannot be stocked on a shelf: the knowledge, skills, and relationships of the people working there.
Historically, the beauty salon showed just how valuable those things could be. It was a business, but it was also a place where information traveled, relationships developed, products were introduced, and people influenced one another. Technology has changed where and how those interactions happen, but it has not eliminated their value.
Ulta’s salon is not the traditional Black beauty shop, but some of the same principles that made those spaces socially and economically significant are still visible in its model. The products matter, but so do the people recommending them, the knowledge behind those recommendations, and the relationships that make customers trust them.
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